Don’t Mistake Digital
Transformation for Business Transformation
By
Erin Koss,
CPA is an Andersen Business Consulting Alumni (1993-1999), and CEO of Syte Consulting
Group, Inc.
In the years we’ve been in business as ERP
consultants, ERP has become the foundation of digital transformation for
family-owned manufacturing companies.
Much has changed with digital transformation in
the last 10 years — and recent events have changed it faster and even more
dramatically.
Yet one thing remains true:
Digital transformation is just a subset of business transformation.
The fact is, you can’t do digital if you don’t
have a handle on your business processes. And you can’t do anything with your
business processes until you have an understanding of the people involved, the
roles they play, and their capabilities and capacity.
With this foundation of people, processes and
technology infrastructure, only then does a new or upgraded ERP move a business
forward in a meaningful way.
I loved this quote from a Deloitte article:
“… some organisations falter because of a
‘knowing-doing gap’: They focus too quickly on defining solutions, instead of aligning
first on why they believe the need for (rapid) change exists. They also fail to
build up knowledge that will shape holistic guidance and strategic direction
for a response to digital disruption. This rushing into ‘doing’ results in
quick fixes and a fragmented response.”
This is why, as we’ve planned for our own growth as a company, we’ve doubled down on our focus on business transformation. Yes, we are ERP consultants, and it’s a new or upgraded ERP that most often serves our fast growing, family-owned manufacturing company clients (though not always) — but the business transformation starts long before new software solution is installed, and continues long after implementation. It smooths the path for future innovation, including the future of ERP, and makes the load lighter for continued growth.
Business transformation starts with a clear business strategy.
Critical to a successful strategy are your
people, processes and technology. When you align these three factors with your
growth goals, you can get answers to the bigger questions that technology alone
can’t answer, including:
- What
will give your business the biggest return for the investment?
- How
can you play to your existing strengths?
- What
should your primary focus be now? Next quarter? This year?
- What
matters most to your customers and partners?
- Are
there collaborative opportunities to work together for the betterment of
all?
The best ERP in the world won’t help your
company if your people, processes, and technology infrastructure are misaligned
with your business strategy and vision.
Business transformation, at its core, is the process of creating this alignment.
Syte’s Road to Business Transformation
Business transformation is a journey, much like
a road trip. At the beginning, you may be starting out on a bumpy gravel road.
As you move through the steps, the gravel gets smoother and eventually turns
into fresh asphalt. Eventually you’ll reach a multi-lane highway, with clear,
understandable signs and lines directing you where to go.
Based on our many years of experience guiding
family-owned manufacturing companies through this process, we’ve developed a
framework that walks our clients through the steps to get to that smoother
pavement efficiently. And once you’re on this business transformation highway,
making continuous improvements over time becomes infinitely easier.
This framework includes four steps:
- Measure
business transformation readiness.
- Assess
the current state of business processes and the people who are driving
them.
- Evaluate
and select technology solutions that meet critical business requirements
(including, but not limited to, ERP).
- Implement
solution(s).
In each step, Syte provides leadership,
oversight, capabilities and capacity to help ensure success — while keeping our
eyes on your ultimate destination.
It’s important that during each step along this
road, we are efficient with your time and ours, so we follow the same process
each and every time:
- Discover
- Define
- Deliver
With this process, our clients get everything
they need to succeed with their new or upgraded technology solutions — and they
also get a clear roadmap for business success.
Your ERP solution will have a much bigger impact
on your company when it is implemented in an environment where your people,
processes and technology infrastructure have been considered, worked through
(or with) and optimized.
And no, this doesn’t necessarily increase the
cost of the project! Implementing the wrong ERP, or implementing an ERP
solution in an organization that isn’t well prepared for it, however, will.
In fact, some companies are now making our business transformation process part of their annual planning process. I think this is powerful. After going through the process the first time, revisiting it on an annual basis is much less work, and it’s much easier and faster to make incremental changes. Companies making business transformation part of the ongoing conversation are having an easier time continuously optimizing their business and staying ahead of competitors.
Structured for Your Success
We’ve taken our lessons-learned as a company and
created this offering to maximize our clients’ return on investment. It takes
our clients through the necessary steps to achieve greater business success —
not just fancy up their technology.
A successful business transformation should
positively impact:
- Business
processes
- Roles
and responsibilities
- How
work gets done
- How
your company interacts with customers and suppliers
For family-owned manufacturing companies, ERP
remains a necessity. But the business and market environments have changed, and
shoe-horning in a new software solution won’t solve the bigger business
challenges.
Let’s prepare your company for success — not just for a new ERP solution.
Erin Koss, CPA is an Andersen Business Consulting Alumni (1993-1999), and CEO of Syte Consulting Group, Inc. She is known for helping family-owned manufacturing companies scale with vision and integrity. Taking a people-first, process and technology readiness approach, Erin and the team at Syte ensure companies are ready to take on big change initiatives like ERP before diving in headfirst. A native to the Pacific Northwest, she enjoys traveling, being outdoors, hiking, biking, rowing, and supporting local culinary scene. Talk to Erin about preparing your company for sustainable growth.